rather than pick out individual stocks to trade, it can often be worthwhile to trade the indices themselves, especially in times of high volatility.

for those so inclined, i attach below charts for FTSE and FTSE 250, though one might equally be tempted to trade Dow or S&P, which is significantly broader in its coverage, or even NASDAQ

for ease of reading, i have attached 1 year and 3 month charts in each instance

The higher it rises the harder it'll fall. History tells us this, its just a waiting game..

How long does it take for institutions to decide about closing short positions?

Is it discussed within institution or is based on instant decision by an individual ?

S
you are quite correct. but in mean time it means we need deep pockets to hang on to a losing position.that is something i don't have, so i always use stop losses and i take it
and manage it from there
good luck to all
regards
jkd

Why would you close a short position when an all time high has just been struck. If anything you'd increase your position as the probability of going higher is less than going lower on the basis that the markets have been lower before. Lets remember that the DOW is no reflection of the economy, its just 30 companies not the biggest or the most significant, its not a economy.

shortie - i agree; certainly wouldn't be opening a long at these levels, and if i had one running, i'ld now be running a tight stop ..... inclination is certainly to short dow

S
i am sorry but i don't follow your logic, my apologies if i misunderstand.
regards to you
jkd

bull market

jkd "but in mean time it means we need deep pockets to hang on to a losing position"

I'm saying I'd short the all time high so would only carry a losing position maybe a handful of points. Like Cynic says run a tight stop or my preferred method start small and build the position as it establishes..

The last time the Dow hit a high, in 2007, the Federal Reserve and the European Central Bank were already collaborating on a global economic bailout, and Bear Stearns collapsed six months later. Before that, the high was in January 2000, only about three months before the market started a long, ugly downward slide in the wake of the tech boom. Go back further, in 1987, when the Dow hit a temporary high before the recession of the late 1980s and early 1990s hit. In 1966, the Dow hit 1,000 and by 1967 the economy began a long downward slide into the stagflation of the 1970s and the recession of the early 1980s.

None of that, however, beats the Dow's high in September 1929, just weeks before the giant crash that ushered in the Great Depression.

It all proves one thing, the bubble is at its biggest right before it bursts..

http://www.infowars.com/the-dow-hits-an-all-time-high-translation-a-bubble-is-always-biggest-right-before-it-bursts/

That's the second attempt at a high break this year - I'm staying short for now currently +9. (6,532)

On edit - that's 6,535.

why short ftse instead of dow - or even both?

just to clarify the latest posts
i wonder how many sort of crossed in the ether and who, if we don't say so, is talking to who? i.e is S's post no.12256 is it addresed to me or to ahoj?
just looking for clarification. anyone who may have any problems with my responses and to whom they are adressed please let me know and i will correct.
thanks and good luck
regards
jkd

cynic - the DOW tends to bite me more!

jkd post 12256 was for ahoj, only noticed your post after I had posted, sorry for the confusion.

Skinny, I'll second the bite on the DOW...

S
that's ok thanks for your confirmation. it does happen and it's not your fault.
regards to you
jkd

I am still out - main reason is I have no cash having put it all on AMER in anticipation of a steady rise from here. Ho Hum

EUR German Factory Orders m/m 2.2% -0.4% 2.3%

Wow

Thinking about adding a miner or two to the portfolio e.g. BLT.

You want extra mayo with that BLT, Floss? :o)